Research surveys

Public Sector Outsourcing

IZA World of Labor, No. 65, November, 2020

Author(s): Panu Poutvaara and Henrik Jordahl

Public Sector Outsourcing Panu Poutvaara and Henrik Jordahl

The decision to outsource public provision of services is multifaceted and context dependent. Doing so tends to lower labor intensity and increase its efficiency. Costs are usually lower, but quality problems can affect services like health care, though consumer choice has stimulated innovation and quality in both education and health care. Natural monopolies are less suitable for outsourcing, while network services (public transportation) may be outsourced through public tenders. Though some jobs may be lost in the short term, the long-term effects are generally positive for a wide variety of activities.


Reference:

Poutvaara, Panu and Henrik Jordahl (2020). "Public Sector Outsoucing". IZA World of Labor 65(November).

Henrik Jordahl

Contact

Ph: +46 8 665 4533
Mob: +46 70 938 3858
henrik.jordahl@ifn.se

Interdisciplinary European Studies

The European Union and the Return of the Nation State

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This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

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